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PMO BUSINESS CASE

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Version History and Sign-off

Version Reason for Change Date of Approval Approver's Name

0.1 Initial Draft dd/mm/yyyy Joe Bloggs
 PMO BUSINESS CASE
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Purpose

The purpose of this document is to clearly outline the justification for the implementation of a PMO as an organizational investment.

It presents the need for a PMO, options considered, and details the costs and benefits for the approach deemed as preferred for the PMO implementation.

The PMO Business Case is a foundational document which is subject to formal sign-off.
 PMO BUSINESS CASE
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1. Executive Summary

<Provide a summary of the Business Case here.>

2. Business Need or Opportunity

<Describe the business need or opportunity for the implementation of the PMO, including how it aligns to strategic objectives.>

3. Options Analysis

The following options have been considered for the implementation of the PMO:

Options High-Level Benefits High-Level Costs Risks

Do nothing
Implement a PMO pilot (support)
Implement a Portfolio PMO
Costs of inefficiencies (about Projects continue to be late and over
No additional change to manage
$50,000 per year) budget
Easier to manage change Unavailability of stakeholders to test
PMO team (about 120,000)
Early realization of benefits the approach
PMO team and PPM tools Unconsistency of maturity levels
Full range of services deployed
(about 300,000) across services

3.1. Preferred Option

<Identify the preferred option resulting from the previous Options Analysis. Provide a sound justification on why this is the preferred approach.>

4. Costs and Benefits

4.1. Costs Breakdown

The following costs have been estimated for the implementation of the PMO:

Cost Category One-off Costs Annual Costs Total

Salaries $ $90,000 $90,000
Training $5,000 $2,000 $7,000
Professional Development $ $4,000 $4,000
Supplies $ $1,000 $1,000
Tools $10,000 $3,000 $13,000
Total $15,000 $100,000 $115,000
4.2. Benefits Breakdown

The following benefits have been identified as a result of the implementation of the PMO:

Benefit Category Benefit Unit of Measure Baseline Target

Delivery Projects delivered on time % of projects late 30% 10%
Delivery Projects delivered on budget % of projects over budget 25% 10%
Delivery Improved deliverables quality % of projects with defects 40% 15%
Delivery Improved estimates accuracy Max estimates variance 50% 20%
Portfolio Improved resource management % of resources overallocated 27% 7%
Portfolio Projects aligned to strategic objectives % of projects with business case 5% 75%
Centre of Excellence Enhanced Project Management competencies % of certified project managers 10% 60%
Centre of Excellence Knowledge re-use % of projects started with lessons learne 0% 50%

5. Assumptions

<Identify the assumptions that were made when developing this Business Case.>